Ras Al Khaimah is an emirate in the north of the UAE, a fast-growing investment and tourist destination, and one of the largest economic zones in the country. While housing here is not as popular as, for example, property in Dubai, demand for apartments and houses in Ras Al Khaimah will grow in the near future. Major Middle Eastern developers, such as Emaar, are showing interest in launching new projects in the local market, so it is worth considering investing in local property today.
Content:
- Trends and prospects for the development of Ras Al Khaimah
- Benefits of investing in Ras Al Khaimah housing
- The most sought-after areas of the emirate for buying property
- How to buy Arabian property profitably?
Trends and prospects for the development of Ras Al Khaimah
Ras Al Khaimah has access to international sea and air transport links. Its strategic location provides easy access to markets in the Middle East, Asia, Europe, and Africa, making the emirate an ideal location for business.
The Emirate’s economy is one of the most dynamic in the country. It has a modern port, off-plan residential and commercial complexes, tourist facilities, and industrial parks. Ras Al Khaimah is home to companies in a variety of industries, including manufacturing, services, and tourism. The city is now home to about 0.4 million people and has a total GDP of about $11 billion. GDP per capita reaches $28,500.
Ras Al Khaimah is a free trade zone and offers many benefits to entrepreneurs: full ownership for foreigners, full repatriation of capital and profits, and zero import and export taxes. These measures create new business opportunities, help attract foreign investment, and make the city internationally competitive.
The emirate also announced the launch of RAK Digital Assets Oasis, the first free economic zone in the emirate that caters to digital asset companies. The main objective of this zone is to provide services for businesses managing virtual and digital assets such as meta-universe, blockchain, gaming, and NFT.
The emirate’s government encourages innovation and invests actively in the development of the tourism sector and property market. By 2030, the emirate plans to have welcomed 3 million tourists annually. Support for sustainable development initiatives has become part of the tourism project. The emirate aims to become a leading regional player in ecotourism by 2025.
Benefits of investing in Ras Al Khaimah housing
There are a number of advantages to investing in local real estate:
- Growing market. In the first half of 2023, prices for apartments in popular areas of the emirate increased by up to 7.49% and for villas by up to 6%. The rental value of flats in popular neighbourhoods increased by 9.86% and that of villas by 6.5%. Return on investment (ROI) in some areas exceeds 11.6% per annum.
- Property ownership. An important advantage of Ras Al Khaimah is the presence of freehold zones, where housing can be purchased with the right of full ownership.
- Favourable prices. Villas and apartments in Dubai and Abu Dhabi are noticeably more expensive than in Ras Al Khaimah. The average price difference is between 30 and 50%. Also, the cost of living here is not as high as in the major emirates.
- Absence of personal income tax. If the owner of the property wants to rent it out, the entire rent minus small maintenance costs will come to him.
- Partial subsidisation of the registration fee by the developer. In the UAE, the fee for the purchase of a property is 4% of the transaction value. However, in Ras Al Khaimah, 2% is paid by the developer. While in Dubai, such a scheme is optional, for example, if the developer wants to attract the buyer with a pleasant bonus, it is enshrined in law here.
- High return on investment (ROI). The average ROI of real estate in Ras Al Khaimah is 6% per annum, the maximum can reach 11.7%.
Thus, the emirate offers quality properties at attractive prices and a comfortable tax-free environment, making it a great place to invest.
The most sought-after areas of the emirate for buying property
Some of the most popular locations in Ras Al Khaimah include the following:
- Al Hamra Village
- Mina Al Arab
- Al Marjan Island
- Yasmin Village
- Dafan Al Nakheel.
Al Hamra Village is located on the shores of the Persian Gulf, in the south of Ras Al Khaimah. Surrounded by white sandy beaches, the community comprises approximately 4,000 villas, townhouses, and apartments. The community has an 18-hole golf course and a marina. Flats here are in high demand. In H1 2023, the price per square metre increased by 4.3% compared to the end of 2022. The average price for 1-bedroom apartments is $136,000, for 2-bedroom apartments, it is $225,500, and for 3-bedroom residences, it is $381,000.
Al Marjan Island is an artificial archipelago consisting of four small islands. There are residential and commercial properties, two five-star beach resorts, and extensive landscaped areas. The price per square metre of local residential property has increased by 7.5%. A 1-bedroom flat can now be bought for $181,000. Apartments with two and 3 bedrooms cost about $272,500 and $544,500, respectively.
Mina Al Arab is a resort area 25 minutes from the airport, close to the E11 motorway, providing quick access to other areas of the emirate. It is a secluded community with developed infrastructure, close to prestigious schools and hospitals. A 1-bedroom apartment can be purchased here for $190,500.
Yasmin Village is a community with apartments and penthouses. It has everything you need for a comfortable life, including shops, cafes, and a medical centre. A large shopping centre, RAK Mall, is just 8 minutes away. There are many green areas and children’s playgrounds in the neighbourhood. A finished 1-bedroom flat with full furnishings can be bought for $109,000.
Dafan Al Nakheel is a community with authentic Arabic-style architecture located along the E11 motorway. The self-sufficient community has many amenities, such as shops, schools, and restaurants. Nearby are a cinema and entertainment centres, public beaches are 10 minutes away. The community features residences in different configurations. Apartments with 1 bedroom are available for $133,000.
Al Hamra Village is among the most popular neighbourhoods for rent. Over the first half of 2023, rental prices here have increased by 3–6%. The annual rent for a studio in this location now costs about $6,800 per year, the price for a 2-bedroom flat is $14,000. A 3-bedroom villa can be rented for $25,500 per year.
At Al Marjan Island, rents for 1- and 2-bedroom flats have increased by up to 10%.
In Mina Al Arab, studio rents have risen by 2.4–5%. This data will be useful for investors who plan to rent out the purchased property.
How to buy Arabian property profitably?
Our website, Emirates.Estate, provides information about various properties in the UAE on one platform. You can use filters by property type, neighbourhood, area, amenities, and other parameters to find suitable offers and select your favourite ones. Start your search for apartments in development projects in Dubai and Ras Al Khaimah, villas in Dubai, or properties in other emirates today.